December 22, 2009

Illinois Home Sales Record Major Gains in November from a Year Ago
Sales Up 64.0% Statewide and 71.6% in Chicago Region

SPRINGFIELD, Ill. — Pent-up buyer demand plus low interest rates and the homebuyer tax credit incentive yielded a second month of double-digit gains for Illinois home sales in November, in stark contrast to home sales one year ago in November 2008. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in November 2009 reached 10,361 homes sold, up 64.0 percent from November 2008 sales of 6,317, marking the third consecutive month of year-over-year sales increases in Illinois. The statewide median price in November 2009 was $155,000 down 4.3 percent from $162,000 in November 2008. The median is a typical market price where half the homes sold for more, half sold for less.

“Typically, sales trail off as we enter the holiday months but this year many buyers decided now is the time to make that move. November’s sales surge reflects the rush to beat the tax credit deadline, which has been extended through April 30, 2010 and should continue in the months ahead to motivate buyers to get off the fence and take advantage of these ideal buyer market conditions,” said REALTOR® Mike Onorato, GRI, president of the Illinois Association of REALTORS® and broker-owner of Onorato Real Estate in Coal City.

Adds Onorato: “The last three months have seen home price declines trending downward and this is a positive sign that prices are beginning to stabilize. As prices stabilize and inventories shrink we will see a return to a more balanced housing market.”

In the Chicagoland Primary Metropolitan Statistical Area (PMSA), year-over-year home sales were positive for the fifth consecutive month, up 71.6 percent to 6,826 homes sold (single-family and condominiums) in November 2009 compared to 3,978 homes sold in November 2008. The median home sale price for the Chicagoland PMSA was $189,000 in November 2009, down 9.1 percent from $207,995 in November 2008.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.93 percent in November 2009, down from 5.0 percent during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in November it averaged 6.13 percent.

“Forecasts for December, January and February indicate sales increasing robustly in Illinois and Chicago on an annual basis, but median price movements in Illinois hold the potential for a mild recovery that is not, as yet, evident in the Chicago market,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

Adds Hewings: “The economic news has been dominated by the national job numbers; the national economy shed only 11,000 jobs in November, a dramatic decrease in the rate of job decline over the first part of the year and even over the prior three months when job losses had averaged 135,000 a month. Illinois has recorded 23 months of job declines since the recession began in December 2007.”

Illinois’ official unemployment rate in November dipped slightly to 10.9 percent (down from 11.0 percent in October) but remained above the national rate of 10.0 percent in November.

In the city of Chicago, November total home sales (single-family and condominiums) were up 69.9 percent to 1,859 sales compared to 1,094 homes sold in November 2008. The city of Chicago median price in November 2009 was $215,000 down 3.4 percent compared to $222,500 a year ago in November 2008.

“November's city transactions point to an increase in the number of units sold over the same period in 2008. The first-time homebuyer tax credit has provided an excellent incentive to help buyers off the fence,” said Genie Birch, president of the Chicago Association of REALTORS® and a broker associate with Koenig & Strey GMAC, Chicago. “We are monitoring the movement of sales as the year closes, continuing to see distressed properties absorbed and the correction of the Chicago marketplace continue.”

According to the IAR report, total home sales (single-family and condominiums) comparing November 2009 to the same month in 2008 were up in 65 of 99 Illinois counties; 40 percent of reporting counties also logged median price increases.

The following Illinois counties reported both sales and median price increases in the month of November: Adams County sales up 63.6 percent, median price up 13.5 percent to $101,000; Lake County sales up 60.7 percent, median price up 7.0 percent to $198,000; Macon County sales up 8.0 percent, median price up 6.0 percent to $88,000; Peoria County sales up 28.0 percent, median price up 4.4 percent to $113,000; Sangamon County sales up 72.1 percent, median price up 10.7 percent to $115,000; and Whiteside County sales up 1.8 percent, median price up 3.1 percent to $82,500.

Year-to-date January through November 2009 sales statewide were down 3.1 percent to 99,235 homes sold compared to 102,372 homes sold in the same 11-month period in 2008. The year-to-date median price was down 14.9 percent to $157,500 compared to $185,000 in 2008.

In the Chicagoland PMSA year-to-date January through November 2009 sales were down 2.4 percent to 63,538 homes sold compared to 65,086 homes sold in the same 11-month period in 2008. The year-to-date median price was down 18.2 percent to $197,945 compared to $242,000 in 2008.

In the city of Chicago year-to-date January through November 2009 sales were down 10.4 percent to 17,633 homes sold compared to 19,681 homes sold in the same 11-month period in 2008. The year-to-date median price was down 22.9 percent to $225,000 compared to $291,800 in 2008.

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

The Illinois Association of REALTORS® is a voluntary trade association whose 50,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.-- Illinois Association of Realtors --

 

 

June 9, 2009

By JENNIFER WHEELER Contributor

     After 4 Years - A Masterpiece Unveiled !

When walking around the tan and beige home held up by 14-inch-thick concrete walls and surrounded by more than $2 million worth of Jerusalem gold limestone from Israel, guests may feel a luxurious change in temperature. The home has a breezy, Spanish flair on two sides thanks to special touches from a Spanish engineer.

The 4,000-pound, steel-framed double doors ornamented with brass are capped by $180-per-square-foot mosaic Italian tile above.

But that's just the outside.

When entering the home, guests first cast their eyes upon a hand-carved, intricately patterned railing made from wood imported from Mexico that embraces the 22 Brazilian cherrywood steps of the main staircase. Its destination: Five master bedroom suites. The six Algerian and Moroccan doors to these suites on the second floor cost a half-million dollars. Each suite is accompanied by a Jacuzzi and shower, and one particular suite made of gold Jerusalem limestone has an adjacent room used only to store leather, shoes and furs.

The Burr Ridge mansion at 6501 S. County Line Road, known as Villa Taj, was designed and built with the help of eight international engineers. And for a mere $25 million, it can be yours, said Realtor Kristine Farra of Prudential Preferred Properties.

The 45,000-square-foot palace has generated international interest; three potential buyers were shown the home June 4.

"The inspiration has to do with (the owner's) world travels and experience -- what he's seen, where he's been," said Basri Emini, chief executive officer of Emini Equities and close friend of the owner.

The owner, who wishes to be identified only as an area entrepreneur, custom designed every intricate detail within the home. The house includes a grand kitchen with exterior double doors to allow caterers access without disturbing parties. It has a formal living room, multiple bathrooms, including a Mexican pineapple onyx power room and a conservatory. A ballroom has been constructed so that the echo from the 38-foot ceiling is silenced. The library has shelving extending along all four walls, and a cigar room and wine cellar adjacent to the kitchen to allow company to relax after enjoying a meal. Other rooms include a dining lounge, formal dining room, a family entertainment room with a 130-year-old door from a Moroccan palace connecting to the hallway, servants living, laundry and bathroom quarters in the basement, a game room and theater that can that can be customized for the future owners and a 20-car garage.

"This house has a huge Middle Eastern influence on it," Emini said.

The current owner decided to sell a little more than a month ago, after he realized he loved the building process more than actually living in the extravagantly decorated home, Emini said.

He said the owner decided on Burr Ridge because of its convenient distance to malls, airports and the Windy City.

Although neighbors have been uneasy about what would come out of the four years of construction, Emini said the residential home may increase their property value.

"We have put the city on the map when it comes to luxury realties," Emini said. "Right now, you look at the United States, you have Orange County, you have the Hamptons, you have Aspen, and now we have it in Burr Ridge.

Village Trustee Bob Grela applauded the uniqueness of the architecture of Villa Taj, but it did not invent elegance in Burr Ridge, he said. The home "is adding to the list."

"He didn't start the list. There are some outstanding homes just within an eye-shot of this house," Grela said.

Village Trustee Dwight DeClouette said he has not heard comments from the public about the listing of the home. He added that the home is being sold as a residential property. The permits the owner requested from the village during construction allow it to be sold only as a residence.

On June 3, brokers from Chicago and suburban areas toured the home, with wine and food catered by Burr Ridge's Capri Ristorante.

Realtors certainly are given a reason to push for a sale. The broker who seals the deal will receive 2 percent of the listing price, or a half-million dollars, Emini said.

The owner already has his mind set on another location to build, but the location remains a secret. But Emini said to expect something just as magnificent.

To Schedule a Private Showing or For Additional Information:
Contact Exclusive Listing Agent:
Kristine F Farra - 312-953-9567 Direct
www.VillaTaj.com

----------------------------------------------------------------------------

May 12, 2009

Tax Credit Can Be Used for Down Payment !
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing ...

------------------------------------------------------------------------------------------------

Home Sales In Chicago Start To Move !

Optimism grows as sales increase slightly, median price up from previous month

By Mary Ellen Podmolik | Tribune reporter

April 26, 2009
( excerpts taken from complete article above )

Area real estate agents are making space in their cars for clients again and they get almost bubbly when they talk about the uptick in activity.
...   In the past few weeks, agents say an undeniable scent of sales is in the air, and data released Thursday gave credibility to their talk.  March sales of previously owned single-family homes and condominiums in Illinois posted their second consecutive month-over-month gain, and for the first time since June, the statewide median price for a home rose from the prior month.

Suburban counties seeing among the largest month-over-month sales increases were Lake County, 65 percent; Kendall County, 51 percent; and Cook County, 38 percent.

Realty agents are taking pains to not get too giddy. After all, that 38 percent one-month gain in sales in Cook County translated to 2,409 properties sold. In March 2008, 3,432 homes sold in Cook County.

"We're starting up from a very low base," said Pat Callan, president of the Illinois Association of Realtors. "We're starting to baby step off of that and it's good. It gives me confidence we're heading in the right direction."

Consumers, it seems, are starting to act on a number of factors working in their favor. There's the $8,000 non-repayable federal tax credit for first-time buyers for principal residences bought before Dec. 1. There are interest rates on 30-year, fixed-rate conventional mortgages, which were 4.9 percent on Friday, according to Bankrate.com. There are home prices, which have gotten much more realistic and reasonable in many areas.

And finally, there's the fact that life goes on. ... people are realizing they have to move on with their lives and that's what they're doing... 
...
First-time buyers continue to fuel the sales engine, accounting nationally for 53 percent of March transactions, which largely included sales before the tax credit's introduction.

An $8,000 tax break made the decision easier for Naperville renters Chad and Michelle Gargrave. After saving for five years, the couple began looking for their first home in early March, shortly after the tax credit was announced. They zeroed in on a 2,400-square-foot Woodridge house that went on the market a few weeks before at $337,500.

After negotiating, the seller accepted their $320,000 offer and they closed on the purchase Thursday, having locked in a 4.75 percent interest rate on a 30-year mortgage. Chad, a telecom industry lawyer, and Michelle, a 4th-grade teacher, had reservations about taking such a big step, but friends and family pushed them forward.

 "Housing prices are low, mortgage rates are low and with the tax credit, it was almost too good to pass up."

....

....
With the market stirring, agents are telling serious sellers to offer their homes at prices lower than they would have sold for at least two years ago. Advice for buyers? The time is Now !

---------------------------------------------------------------------------------------------------------------------

About-Face On Housing In The Loop
April 13, 2009

The Daley administration's new plan for downtown aims to curb residential development in the Central and West Loop, a marked shift from the decades-long push for a "24-7" downtown that doesn't go dormant when the workday is done.

Part of a draft of the so-called Central Area Action Plan, the changes are a bid to preserve sites for new office towers and avoid some of the clashes that have arisen as residents have poured into downtown.

The plan seeks to cluster office buildings at the city's core and near public transit while pushing residential development just outside the so-called Downtown Core Zoning District, bordered roughly by the Chicago River to the north and west, Congress Parkway to the south, and Dearborn Street to the east. Office developer John Buck is co-chair of the committee behind the plan. The committee task force recommending the zoning changes includes a John Buck Co. executive and the local head of development for Buck's biggest rival, Hines Interests L.P.

"The thinking was not pro-office, anti-residential by any means," says Mary Ludgin, a partner at Chicago-based real estate investment advisory firm Heitman LLC, who heads the task force. "Chicago's downtown is not just a central business district. It's a place to live, shop, be a tourist and go to a convention. And part of it is making sure you've got all those uses in the right places."

The task force's two specific recommendations, which are to be vetted by neighborhood groups and others before becoming part of the city's final plan, would make residential a "special use" in the Downtown Core district and increase minimum lot area requirements.

The moves, if adopted by the City Council, would effectively make residential development less attractive by adding costs and regulatory hurdles.

Some contend that the market should decide a site's best use.

"The city can push, but the market's going to dictate what gets built," says Alan Lev, CEO of Chicago condo developer Belgravia Group Ltd. "I think the city's better off keeping some flexibility so what is able to be done can be done."

The downtown area's population reached 165,500 in 2007, up 48% from 2000.

Much of that growth was outside the core, in places like Streeterville, the South Loop and west of the Kennedy Expressway. Still, more than 2,500 new residences — mostly condos — have been built in the core over the past decade. Almost 1,000 new apartments are to open there in 2010 and 2011, according to research firm Appraisal Research Counselors.

'BUTTING OF HEADS'

"We've seen such an increase in the residential uses in our downtown area, but we don't want that to affect in a negative way the office uses," says Patricia Scudiero, Mayor Richard M. Daley's commissioner of the Department of Zoning and Land Use Planning and co-chair of the committee with Mr. Buck. "Sometimes there's a butting of heads and questions about who gets the priorities over issues like noise and parking."

She says her department is still studying the issue. The idea isn't to prohibit residential, she says, but rather to encourage office development — especially in the West Loop around Clinton Street, where the plan envisions spending billions on new mass-transit projects.

Heitman's Ms. Ludgin and others say the number of available office sites is shrinking. That ultimately could curtail job growth here.

"If there isn't zoning to encourage the business district to expand, other uses will utilize the land instead," says Greg Van Schaack, a senior vice-president at office developer Hines Interests and a task force member. "Growing businesses will look elsewhere to locate."

By: Eddie Baeb
© 2009 by Crain Communications Inc.

-----------------------------------------------------------------------------------------------------

03-13-2009

Sears Tower Name Change !
Straight From The Source ( .. Of the source ... )
-- Courtesy Billy Dec.com --

" hear from the owner -
i talked to him this morning - want to know what he said? first, a quick story…..will never forget, was so nervous on my first day moving into my dorm/suite at the harvard business school - totally intimidated w/ no friends- like high school all over again.  Across the hall was a bedroom door 3 ft away where I could over hear a guy that was now my suitemate- with a noticeable accent- so assumed he wasn’t from the country like most other classmates in this particular program- and thought it was only right to give him a big american welcome. so i intro myself and say- hey man- I’m billy dec- from chicago- i’m in entertainment- and he says- hey, im joe Moinian- I love chicago- and travel there all the time!  I say- great! Feeling totally in position to be the guy to invite him to my hometown place of business- I say, well when you come- I can show you the city! and you have to let me take you to my place rockit for a burger!  Just as I am getting over myself thinking I am sorta connected to the city more than any other classmate- I say- wait, you love chicago and go there all the time- why?  He every so as a matter of fact says- oh, I just bought the sears tower.  Omg!  never felt smaller- cant believe I just showed off that I have a burger place- and he has the sears tower- wow- almost packed my suitcase and left right there- knowing I was way out of my league!  Long story short, we became great suitemates, study buddies and friends- he’s funny, cool, smart, nice,… definitely a man who works hard and knows what he is doing- someone that I could look up to for friendship and advice… especially if revolved around business and real estate.
Anywho, I woke up this morning to all the crazy headlines of the new name change for the sears tower- so I hit him on his cell to ask him all about it
 - btw, I so am getting flash backs of me and him in the Harvard business school lunch room about two years ago when he asked me if I knew anyone who would want to rent space and name the building after their company- I never thought it could really happen!  we talk, email, text,… at least every month… but today had a nice long talk about it all… but the short of what he told me basically is…

-“the name sears was once very important to corporate business in chicago… chicago is one of the great business / corporate cities… and now the name sears is not where it once was”… “willis is a strong, international, financial,… company that is great for any building… and any city… and for chicago”

-he is “thrilled to have found them” as bringing a strong tenant like that brings “comfort, confidence, excitement” to the building- which is important because that “building is the largest tax payer in chicago” … “And is the biggest piece of real estate within the greatest city… within the greatest country… and needs that confidence, security and excitement.”

-thought his stories were fascinating of how he bought it in 2003 when everyone was afraid to touch it- wouldn’t get near the deal- because it was supposedly back then openly talked about as a terrorist possible threat/target. He invested in it- and invested in our city.

-they did pay him for the naming rights and that along with being a strong stable international tenant with a 20yr lease in such a critical building made sense.

-“the city actually was supportive with incentives” in getting the tenant to come here at this level

-“the chairman is a very smart man and is dedicating a lot to chicago”

Trust me- I am like most not comfortable with changing the most iconic building name in chicago to something new-
But just wanted you to hear another perspective straight from the man himself…More to come- ... actually i just got this email from him… "

------------------------------------

03-March-2009

1st-Time Home Buyers : March Into Spring With $ 8,000 !

Click Here To Read

18- Feb-2009

Our Take On The Stimulus Package

Click Here To Read

---------------------------------------------------------

04 Feb 2009

Fourth Presbyterian Scraps Condo Tower Plan

(Crain's) — The Fourth Presbyterian Church of Chicago has given up on its controversial plan to let a developer build a condominium tower next to the historic Michigan Avenue church.

The proposal, unveiled nearly six years ago, faced increasingly long odds, given strong neighborhood opposition and the deteriorating condo market. It was time to move on, Rev. John Buchanan, the church’s pastor, told church members in a Jan. 20 letter.

“The reasons for this decision include the negative political climate, the current economic conditions and our continuing and growing need for more space for church programs,” he wrote.

In 2004 the church selected Glenview-based Edward R. James Partners LLC and Rosemont-based Opus North Corp. to develop a 64-story condo tower next to the Gothic revival church at Chestnut Street and Michigan Avenue. The proposal suffered a major blow about a year later when then-Alderman Burton Natarus (42nd) announced his opposition to the project. The 42nd Ward includes the church.

Fourth Presbyterian tried to revive the plan even after the Opus-Edward James joint venture dropped out, selecting a new team of Chicago-based developers, Mesa Development LLC and Walsh Group. Mesa and Walsh proposed building a condo-and-hotel tower that would have been about as tall as the original high-rise, Rev. Buchanan said in an interview.

But Alderman Brendan Reilly, who unseated Mr. Natarus in 2007, says he rejected the new proposal after meeting with representatives of the church and developers on several occasions. The new plan was nearly identical to the original one and would have only increased traffic in an already gridlocked neighborhood, he says.

The project also lacks the support of local residents.

“Opposition continues to be widespread and vehement,” Mr. Reilly says.

The development was a key part of Fourth Presbyterian’s growth plan because it would have housed about 60,000 square feet of office and meeting space for the church. The church also would have received more than $20 million in the deal, money that would have boosted its endowment and helped finance a new community center on a site it owns at Chicago and Hudson avenues on the Near North Side.

Fourth Presbyterian is starting to work on Plan B to meet its space needs, possibly by constructing a small building for itself on the site.

As for the Chicago Avenue property, “we haven’t even discussed where we go from here,” Rev. Buchanan says. “For the time being, we’ll keep it.”

Courtesy Crains - By Alby Gallun

-----------------------------------------------------------------------------------------------------------

03-February 2009

Court Strikes Down City's Landmarks Law (Crain’s) — An Illinois appellate court has struck down the city of Chicago’s landmarks ordinance, saying it is unconstitutionally vague, putting in jeopardy the city’s protection of more than 250 buildings and 50 historic districts. The ordinance, which was enacted in 1968, prohibits any demolition or alteration of properties that are designated landmarks by the Commission on Chicago Landmarks, an eight-member body appointed by the mayor. The commission, whose decisions can be overturned by the Chicago City Council, makes landmark designations based on seven standards that the court found violated the Illinois Constitution because they were too vague. “We believe that the terms ‘value,’ ‘important,’ ‘significant,’ and ‘unique’ are vague, ambiguous, and overly broad,” Appellate Court Judge James Fitzgerald Smith wrote for a three-judge panel. While the ruling technically involves only two of the city’s landmark districts, the decision could be applied to all of the city’s landmark areas, leaving them vulnerable to legal challenge, says zoning attorney Jack Guthman, a partner a partner at Chicago law firm Shefsky & Froelich Ltd., who isn’t involved in the case. “They are all compromised,” Mr. Guthman said. The ruling does not immediately invalidate the ordinance, which will remain in effect until the case is over. The ruling is a victory for Albert Hanna, who has waged a personal litigation campaign against the city’s land-use ordinances and was one of two plaintiffs in the case. Mr. Hanna, a senior vice-president with Chicago-based real estate firm Draper & Kramer Inc. challenged the Arlington-Deming District in the posh Lincoln Park neighborhood. The Daley administration is considering appealing the case to the Illinois Supreme Court, a spokeswoman for the city’s Law Department said. “We disagree with the appellate court’s analysis and its end result,” she said. While the court order technically sent the case back to the Circuit Court of Cook County for trial, it effectively decided the constitutionality of the ordinance. “This could have the end result of invalidating the ordinance because the appellate court decision doesn’t really give the circuit any room to find otherwise,” the law department spokeswoman said. The city’s landmark districts cover some of the city’s most historic areas, such as Astor Street in the Gold Coast and the Prairie Avenue District on the Near South Side. Real estate developers and zoning lawyers have complained that the districts have sometimes been used to effectively “downzone” neighborhoods, reducing the size of new buildings by limiting any new construction. The Historic Michigan Boulevard District, which was established in 2002, was opposed by many property owners in the district, which stretches along Michigan Avenue from Randolph Street to 11th Street. The ordinance uses the same criteria for landmarking individual properties and for creating landmark districts. The other plaintiff, Carol C. Mrowka, challenged a landmark district in the East Village neighborhood on the city’s Northwest Side. The plaintiffs were represented by Chicago attorney Thomas Ramsdell. Appellate Court Judges Margaret O'Mara Frossard and Michael P. Toomin joined in the decision.

------------------------------------------------------------------------------------------

01 February 2009

NOW MAY BE THE BEST HOME-BUYING MARKET SINCE THE END OF WORLD WAR II

If you are thinking about purchasing a home or condominium in early 2009, “now may be the perfect time to buy,” ....

Amid what some experts believe may be the best home-buying market since the end of World War II, Chicago-area house hunters who are bold enough to sign a residential sales contract are beginning to reap hefty financial rewards—often saving tens of thousands of dollars, analysts say.

“The current downturn is not a real estate crisis in the United States. It is a financial crisis,” noted Gouletas, a condo-conversion specialist who has developed, marketed and managed over 45,000 units valued at $4.5 billion in more than 100 buildings in 40 markets nationwide since 1969.

“It’s still very much a buyer’s market,” Gouletas said. Although it may take “up to three years” for the Chicago-area housing market to fully rebound, Gouletas expects it to come roaring back.

Both new and resale home sales are expected to improve in 2009 as people take advantage of the buyer’s-market conditions with the lowest mortgage interest rates in nearly 50 years, an ample supply of housing choices, and negotiating room on price, experts say.

Of course, prospective home and condo buyers will need to have down payment cash, job security, a good credit score of 720 or higher to qualify for a mortgage because most lenders’ loan-approval requirements are more stringent than in prior years, consumer advocates say.

Benchmark 30-year fixed-rate mortgages averaged 4.96 percent in mid-January, reported Freddie Mac’s Primary Mortgage Market Survey. A year ago, 30-year fixed loans averaged 5.69 percent.

The benchmark rate has not been lower since Freddie Mac started the Primary Mortgage Market Survey 38 years ago in 1971. Veteran mortgage watchers say today’s rates actually are the lowest in nearly a half century.

“Interest rates are fell to another record low due in part to the slowing economy and government actions,” said Frank Nothaft, Freddie Mac vice president and chief economist. “So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages.”

The Federal Reserve is expected to pump an additional $570 billion more into the home-loan market this year to further shore up mortgage lending and keep rates low, Nothaft said.

Another positive exists for first-time purchasers, who between now and June 30, 2009 are eligible for a new $7,500 tax credit and increased loan limits on FHA-insured mortgages, experts say.

Buyers who are willing to close a deal quickly and move in early 2009 will find an abundance of once-in-a-lifetime deals for the purchase of condominiums and homes that are ready for immediate occupancy, real estate experts say.

Worried about stricter lending practices ? Call us and let us connect you with the experts to help you improve  and maximize your credit score.

For addtional Information Contact : Kristine@GoldCoastRealEstate.com  - 312-953-9567

Courtesy Chicago Agent Magazine 02-2009